THE FEDERAL RESERVE

The Fed is the 'independent' central bank of the US. It was created in 1913 with the passing of the Federal Reserve Act.

It has a unique structure, part private and part government.

The Fed is an independent, non-political institution.

While the Federal Reserve Board of Governors, appointed by the President and confirmed by the Senate, does not need approval from anyone to make decisions.

It consists of:

Federal Reserve Board of Governors

12 Federal Reserve Banks

Federal Open Market Committee (FOMC), this is the monetary policy-making body.

The Fed's responsibilities are:

The Fed controls the US monetary policy, promotes employment, and maintains price stability.

The Fed regulates banks and other financial institutions.

The Fed provides payment services to financial institutions.

The Fed promotes consumer protection and economic growth.